The policy of running deficits and only gradually increasing taxes later to service the debt is referred to as
A) tax-smoothing. B) Ricardian equivalence.
C) generational accounting. D) crowding out.
A
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In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the participation rate?
A. 57 percent B. 40 percent C. 95 percent D. 60 percent
If disposable income increases by $100 and consumption increased by $85, ceteris paribus, we may conclude that
A) the marginal propensity to consume is 0.85. B) the marginal propensity to consume is 0.15. C) $15 is autonomous consumption. D) a change in disposable income is induced by a change in consumption.
Refer to the above figure. For which Lorenz curve does the richest 40 percent make 50 percent of the nation's money income?
A) A B) B C) C D) D
Which of the following is a free rider?
A. Butch breeds the feared pit bulls, and his neighbors now erect fences around their property. B. Fred watches many public television programs, but he has never sent in a contribution. C. Barry steals candy from the store where he works. D. Betty regularly uses the local public library.